If the America's Cup regatta, the world's premier sailing event, returns to this country for its next running, it will be held in San Francisco, sources in the state capital said Wednesday.

The city is expected to get a major boost today in its efforts to host the 34th incarnation of the storied sailing race with software mogul Larry Ellison's BMW Oracle Racing team announcing that San Francisco will be the sole U.S. city under consideration for the next cup race in 2013 or 2014, beating out previous hosts San Diego and Newport, R.I., those sources said.

The move paves the way for San Francisco to try to marshal national support for its effort to hold the series of yacht races whose local economic impact would be topped among sporting events by only the World Cup and the Olympics.

Among other contenders are Valencia, Spain, host of the most recent cup regatta and an undecided locale in Italy.

Mayor Gavin Newsom said early today he was "deeply honored and thrilled."

"We will do whatever it takes to bring this great race to San Francisco," Newsom said. "It is a testament to the unparalleled assets of our city that San Francisco is competing with nations to host the world's most renowned sailing race."The mayor and other city officials have been maneuvering for months to host the 159-year-old race after Ellison's team, sponsored by San Francisco's Golden Gate Yacht Club, captured the cup in February. It was the first time an American team had won the cup in 18 years.

Newsom has been directly engaged in talks with Ellison, city officials have said.

Newsom has said the cup "arguably is five Super Bowls in terms of stimulus." The NFL estimates the Super Bowl generates $300 million to $500 million in local economic impact.

A city-commissioned study is due to be released next week on the economic benefit of holding the cup, which comprises months of races, but one city official said it would bring "hundreds of millions of dollars" into local coffers and create "thousands of jobs."

As winner of the most recent cup, the decision on where the next regatta will be held lies with Ellison and his team. They intend to pick a site by the end of this year.

Officials in San Diego and Newport lobbied Ellison, but the Oracle CEO told a San Francisco audience in February that "this has always been my favorite place to sail."

Last month, Tom Ehman, spokesman for BMW Oracle Racing, said: "Larry Ellison has said all along his top choice is San Francisco."

The city has distinct advantages - its northern waterfront is one edge of a natural amphitheater also bounded by the Marin Headlands and Angel Island.

Races would primarily be run between the Golden Gate Bridge and Alcatraz, city officials have said, giving spectators along Crissy Field, Marina Green and Fisherman's Wharf a front-row seat to a contest that has sometimes been held miles offshore.

Hotels, restaurant and transit facilities are all in place, and there are spots along the city's southeastern waterfront to build a sailing village and headquarters for competing teams.

Potential sites for a sailing village include Piers 30 and 32 near the foot of Bryant Street, Pier 50 in Mission Bay and possibly Pier 80 near the Islais Creek Channel. Treasure Island has been ruled out because of difficulties reaching it with public transit, a city official said.

Ellison has also expressed interest in broadening sailing's popularity through new media, which has a heavy presence in the Bay Area.

Still, serious questions remain.

There is heavy ship cargo traffic traveling through the bay, and state law could trigger lengthy reviews of the environmental impact of the proposed project, which could push needed approvals beyond the team's stated deadline to pick a site.

Newsom's administration has said it is confident the necessary approvals and commitments can be finalized in time, pointing to the 11 months it took to complete a full-blown environmental approval process for expanding San Francisco General Hospital and the 14 months it took to do the same for AT&T Park. A complete environmental impact report might not be necessary for this event.